Depression the Great Depression Pre-Depression Economy Summary

Depression

The Great Depression

Pre-Depression Economy Summary

• Write a journal entry describing a weakness in your chosen character's sector of the economy that would later contribute to the Great Depression.

• Write a summary of the weaknesses in the American economy that contributed to the Great Depression.

The Great Depression was one events of the twentieth century that defined the entire century. It was the longest lasting and most widespread financial crisis in the history of the country. However, it also spread globally and many economies were all involved in varying amounts depending on their trade arrangements with the U.S. The atmosphere in the U.S. was filled with desperation and pretty much any political leaders who had a seemingly reasonable idea gained popularity quickly as people demanded action.

In the United States the economy went from virtually booming to bust in a relatively short time frame. Although the unemployment rates today are relatively high, the differences are not even close when compared to the unemployment rate that occurred to the recessions of the 1920s and resulting global depression. The unemployment rate today is slightly less than the average of all the pre-WWII recessions of the period. However, putting this in context within today's environment can provide insights into the severity of the event.

Figure 2 - Comparison of Recessions (Rampell, 2010)

2. Economic and Psychological Impact Summary

• Write a journal entry describing the economic and psychological impact of the Depression on the character.

• Write a summary of the overall economic and psychological impact of the Great Depression on the American people.

The events started to unfold in September of 1929 as stock prices began falling on the New York Stock Exchange (NYSE). Then on October 29, 1929, a day commonly referred to as "Black Tuesday" the stock market came to a screeching halt. The investors at the time were making creative investments that all feel apart overnight leaving most bankrupt. Businesses that were producing stuff literally watched the demand for their products disappear overnight and they were forced to lower their prices much lower than what it cost to produce those items. Factories were shut down almost immediately and there was a sense of panic that was inherent in virtually every part of the American culture.

3. Franklin D. Roosevelt's New Deal Summary

• Write a journal entry describing the effects of President Roosevelt's New Deal programs on the character and the industry in which that character worked.

• Write a summary of the overall affect of President Roosevelt's programs on the recovery from the Great Depression.

On March 4, 1933, at the height of the Great Depression, Franklin Roosevelt delivered his first inaugural address before 100,000 people on Washington's Capitol Plaza (History, N.d.).